Proposed Action on Rules
Notice is given that the Commissioner of Insurance will consider amendments
proposed by the staff of the Workers' Compensation Division of the Texas Department
of Insurance to the Texas Basic Manual of Rules, Classifications and Experience
Rating Plan for Workers' Compensation and Employers' Liability Insurance (the
Manual). The purpose of these proposed amendments to the Manual is to set
forth guidelines for implementation of the Terrorism Insurance Act of 2002.
Staff's petition (Ref. No. W-0203-05-I) was filed on February 24, 2003.
A public hearing on this matter will not be held unless a separate request
for a hearing is submitted to the Office of the Chief Clerk during the comment
period as defined herein.
The staff's proposed amendments to the Manual are filed pursuant to Texas
Insurance Code Article 5.60 and 5.96. Article 5.60(b) requires the Commissioner
of Insurance to adopt a uniform experience rating plan. Article 5.96 authorizes
the Commissioner to prescribe, promulgate, adopt, approve, amend or repeal
standard and uniform manual rules, rating plans, classification plans, statistical
plans and policy and endorsement forms for workers' compensation insurance.
The staff proposes amendments to the Manual as follows:
1. Amend Rule III E - Calculation of Total Estimated Policy Cost- Item
4 of the workers' compensation policy to include the Terrorism Premium, if
applicable, in the calculation of total estimated policy cost.
2. Amend Rule VI E - Minimum Premium - Number 5, Adjustment Upon Audit
to indicate that if a policy is written on an "if any" basis, no Terrorism
Premium will be charged unless the policy develops premium during the policy
period or on audit.
3. Amend Rule VI I - Schedule Rating to provide that premium for the Terrorism
Insurance Act of 2002 is not subject to schedule rating.
4. Amend Rule VI to add Section J - Terrorism Premium pursuant to the Terrorism
Insurance Act of 2002 to provide that premium charged for losses covered under
the Terrorism Insurance Act of 2002 is based on the policy's total payroll
as defined by Rule V B, Remuneration - Payroll. The amendment further describes
how the Terrorism premium should be determined, states that Terrorism premium
is not subject to modifications, states that Terrorism premium is not included
in standard premium, states that if a policy is written on an "if any" basis,
no Terrorism premium will be charged unless the policy develops premium during
the policy period or at audit and states that Terrorism premium does not apply
to Code 0913.
5. Amend Rule VII B - Premium Discount Number 1 to indicate that Terrorism
Premium is excluded from determination of the standard premium.
6. Amend Rule XV D - Domestic Workers - Residences Number 2c to indicate
that Terrorism Premium does not apply to Code 0913.
7. Amend Rule XVII - Premium Incentives for Small Employers to Section
F indicate that Terrorism Premium is not subject to the premium incentive
for small employers.
8. Amend Procedures A - Policy Issuance Number 6 to include Terrorism premium,
if applicable, as item to be indicated on the Information Page of the policy.
9. Renumber Section XIV - Forms Applicable for Use In Connection With the
Experience Rating Plan of the Experience Rating Plan to Section XV to accommodate
adding a new Section XIV.
10. Add new Section XIV - Terrorism Premium pursuant to the Terrorism Insurance
Act of 2002 to the Experience Rating Plan to indicate that Terrorism Premium
is not subject to experience rating.
The staff requests that the proposed amendments to the Texas Basic Manual
of Rules, Classifications and Experience Rating Plan for Workers' Compensation
and Employers' Liability Insurance as proposed herein be adopted effective
15 days after notice of adoption is published in the
Texas Register
.
The Commissioner has jurisdiction over this matter pursuant to the Insurance
Code, Articles 5.60 and 5.96.
A copy of the full text of the proposed amendments is available for review
in the Office of the Chief Clerk of the Texas Department of Insurance, 333
Guadalupe Street, Austin, Texas 78714-9104. For further information or to
request copies of the amendments, please contact Ms. Angie Arizpe at (512)
463-6326 (refer to Ref. No. W-0203-05-I).
The staff and the Commissioner request that written comments to these proposed
amendments be submitted no later than 5: 00 p.m. on April 7, 2003 to the Office
of the Chief Clerk, Texas Department of Insurance, P.O. Box 149104, MC 113-2A,
Austin, Texas 78714-9104. The written comments should be directed to Gene
Jarmon, General Counsel and Chief Clerk, Texas Department of Insurance, P.O.
Box 1249104, MC 113-2A, Austin, Texas 78714-9104. An additional copy of the
comments should be simultaneously submitted to Nancy Moore, Deputy Commissioner,
Workers' Compensation, Texas Department of Insurance, P.O. Box 149104, MC
105-2A, Austin, Texas 78714-9104.
This notification is made pursuant to the Insurance Code, Article 5.96,
which exempts it from the requirements of the Government Code, Chapter 2001
(Administrative Procedure Act).
TRD-200301428
Gene C. Jarmon
General Counsel and Chief Clerk
Texas Department of Insurance
Filed: February 26, 2003
Notice is given that the Commissioner of Insurance will consider amendments
proposed by the staff of the Data Services Division of the Texas Department
of Insurance to the Texas Workers' Compensation Statistical Plan (the Plan).
The purpose of these proposed amendments to the Plan is to set forth guidelines
for implementation of the Terrorism Insurance Act of 2002. Staff's petition
(Ref. No. W-0203-06-I) was filed on February 24, 2003.
A public hearing on this matter will not be held unless a separate request
for a hearing is submitted to the Office of the Chief Clerk during the comment
period as defined herein.
The staff's proposed amendments to the Plan are filed pursuant to the Insurance
Code, Articles 5.58 and 5.96. Article 5.58 (a) requires the Commissioner of
Insurance to develop reasonable statistical plans, which may be modified from
time to time. Article 5.96 authorizes the Commissioner to prescribe, promulgate,
adopt, approve, amend or repeal standard and uniform manual rules, rating
plans, classification plans, statistical plans and policy and endorsement
forms for workers' compensation insurance.
The staff proposes amendments to the Plan as follows:
1. Add Item 16 to Exposure and Premium Reporting Instruction to explain
how Terrorism Premiums are to be reported using statistical code 9740.
2. Amend Statistical Code listing to include statistical code 9740 for
Terrorism Premiums. Add statistical code 9740 for Terrorism Premiums to the
Statistical Code listing.
3. Remove references to statistical code 0020 for the "Texas Old Program"
from Exposure and Premium Reporting Instructions. Delete references to statistical
code 0020 of the"Texas Old Program" from Exposure and Premium Reporting Instructions.
The staff requests that the proposed amendments to the Texas Workers' Compensation
Statistical Plan as proposed herein be adopted effective 15 days after notice
of adoption is published in the
Texas Register
.
The Commissioner has jurisdiction over this matter pursuant to the Insurance
Code, Articles 5.58(a) and 5.96.
A copy of the full text of the proposed amendments is available for review
in the Office of the Chief Clerk of the Texas Department of Insurance, 333
Guadalupe Street, Austin, Texas 78714-9104. For further information or to
request copies of the amendments, please contact Ms. Sylvia Gutierrez at (512)
463-6327 (refer to Ref. No. W-0203-06-I ).
The staff and the Commissioner request that written comments to these proposed
amendments be submitted no later than 5:00 p.m. on April 7, 2003 to the Office
of the Chief Clerk, Texas Department of Insurance, P.O. Box 149104, MC 113-2A,
Austin, Texas 78714-9104. The written comments should be directed to Gene
C. Jarmon, General Counsel and Chief Clerk, Texas Department of Insurance,
P.O. Box 149104, MC 113-2A, Austin, Texas 78714-9104. An additional copy of
the comments should be simultaneously submitted to Clare Pramuk, Data Services
Director, Texas Department of Insurance, P.O. Box 149104, MC 105-5D, Austin,
Texas 78714-9104.
This notification is made pursuant to the Insurance Code, Article 5.96,
which exempts it from the requirements of the Government Code, Chapter 2001
(Administrative Procedure Act).
TRD-200301429
Gene C. Jarmon
General Counsel and Chief Clerk
Texas Department of Insurance
Filed: February 26, 2003